Conference Board May Consumer Confidence Index Gains to 101.4

The consumer confidence index rose to 101.4 in May from a revised 94.6 last month, The Conference Board reported Tuesday.

The May index was originally reported as 95.4.

Economists polled by Thomson Reuters predicted a 97.2 reading for the index.

The present situation index climbed to 111.6 from a revised 107.1, first reported as 108.1, while the expectations index grew to 94.6 from a revised 86.2, first reported as 86.9.

"Consumer confidence improved further in June, following a modest gain in May," said Lynn Franco, director of The Conference Board's economic indicators. "Over the past two months, consumers have grown more confident about the current state of business and employment conditions. In addition, they are now more optimistic about the near-term future, although sentiment regarding income prospects is little changed. Overall, consumers are in considerably better spirits and their renewed optimism could lead to a greater willingness to spend in the near-term."

Business conditions were called "good" by 26.4% of respondents in June, up from 24.7% in May. Those saying conditions are "bad" fell to 17.8% from 17.9%.

The percentage of consumers expecting a pickup in business conditions in the next half year gained to 18.5% from 16.0%, while 9.8% said they expect conditions to worsen, off from 11.3% in the prior month.

On the jobs front, those who believe jobs are "plentiful" gained to 21.4% in June from 20.6% in May, while the number saying jobs are "hard to get" fell to 25.7% from 27.2%. The respondents who see fewer jobs becoming available in a half year, decreased to 15.1% from 16.6%. Those expecting more jobs to become available rose to 17.8% from 14.7%, The Conference Board reported.

The consumer confidence survey is based on a probability design random sample by the Nielsen Company.

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